You are here

Essay On Accounting Returns

Looking for research paper writing help? Are you in High School, College, Masters, Bachelors or Ph.D All you need is to ask for research, term paper, thesis help written by a specialist in your academic field. When you buy a customized essay from PremiumPapers.net. We offer you an original, 0%- plagiarized and unique research paper written by a dedicated writer who is PhD or Masters qualified. PremiumPapers.net is an experienced service with over 8 years experience having delivered over 79,500 essays over the years.

At PremiumPapers.net revision is free if you are not satisfied, Our organization has a money back policy to ensure all our clients are satisfied and keep coming back

Applying for an order is easy on our site, visit our order page and place all your order information if you have attachments upload them and we will write from scratch.

For every order placed at PremiumPapers.net, you will receive a plagiarism, grammar check report

PremiumPapers.net is affordable, but our quality it premium since we have a huge pool of clients

Accounting Returns

On the normal orders, the margin from the sale of a single bracelet is $125.95. On the order for the special bracelets, the costs are different due to the need of additional materials and special machines. The direct materials will cost the company $149. The direct labor and manufacturing overhead is constant. Therefore, the unit product cost per bracelet is $270. In addition to the direct materials, the requirement for the special engraving machine will increase the unit cost of the product by $46.5.

Therefore, the total unit product cost will be $316.50. If the jeweler accepts the order for the price, stated he will still breakeven. Breakeven point is price level when the production costs are less than the total revenues. The company ought to accept the order at the price given that the special tool can later be disposed for a gain.

Question 2

The company will recover the invested amount in the machine after seven years six months. The intangible benefits will be reaped throughout the production period. The requirement that the required rate of return be 15 percent and above means that the return per year from the machine has to be $112,500. Since the company is saving $100,000 per year, the value of the intangible benefits has to be at least $12,500.

Question 3

At the end of each month, there must be inventory that will account for ten percent of the next month’s product sales. Since inventory is a source of costs for the company, it is not the desire of the management to keep the level higher than the required amounts. Therefore, each month, the company has to produce the amount that will meet the projected sales after adding the last month’s previous inventory. Therefore, there is no piece of inventory that is held by the company without having to deal with the issue of shortage as well as slack.

Manufacturing overhead rate refers to the proportion of the manufacturing overheads that is attributable to the given cost driver such as the units or direct labor hours. The manufacturing overhead cost for the company can be arrived at by dividing the total manufacturing overhead costs for the year by the cost driver (labor hours).

Question 5

The budget contains two components. There are fixed components in the budget. The fixed component does not vary with the rate of business activity. The fixed components entail the aspects that will be set per period. The variable components in the budget indicate variations that depend on the rate of business activity (Schneider & Sollenberger, 2006). The difference in the sales by 1000 units led to the increment in the net income for the month by $1100. The following are the activity variances.

The company ought to focus ore on the variances that can be reduced but still provide the additional units of output. The miscellaneous variances ought to be reduced since they are the ones that offer the company the highest variability. The difference in raw materials demanded with the increment in the quantity demanded for the food can be justified since this is a direct material. The utilities can increase in order to produce the additional quantity since they are required to produce the food. They also make up the direct material requirement. Therefore, the miscellaneous costs ought to be reduced.

Required rate of return
0.16*2200000
352000
Operating income- minimum return
400000-352000
Residual income for the company is 48,000

Question 7

Return on investment refers to the gains that are attained from making of a certain financial sacrifice (Schneider & Sollenberger, 2006). The return on investment can be calculated by dividing the total profits with the investment (cost of assets that have been employed in generating the profit ).
$800000 / $3200000
0.25
8000000 * 2.5
20,000,000
Increases in the net operating income
400,000 * 5.0
2,000,000
Return on investment
2,000,000 / 3,200,000

The new return on investment will be
0.63

In the more realistic scenario, the total investment in assets will be 4,000,000. The total profit in the more realistic scenario will be 2,800,000. . In this case, the return on investment will be arrived at by dividing the 2,800,000 / 4,000,000. The realistic return on investment will be 0.7.

Calculate PRICE (20% Discount)

Type of Writing

Type of Paper

Academic Level *

Deadline *

Number of Pages *

Word Count

0

Total Order Price

(Giroud, DL): "Thank you for writing such a great piece, this is exactly what my professor was requesting and the writer got it right and spot on"Topic: Cultural difference between American Whites & Blacks"Discipline: LiteratureFormat: HarvardPages: 7

(Greg, MK): "You just made my work easier, the grammar and content is awesome. This paper is way above what i expected. I will place another order again"Topic: Obama health policy"Discipline: PsychologyFormat: APAPages: 11

We offer FREE paper outline

We offer FREE Cover-page

Enjoy FREE Bibliography/Reference

We offer you a Plagiarism report per paper

we offer you FREE Reference list

Enjoy FREE paper formatting i.e APA/MLA

we offer you FREE paper editing

Ask for a FREE Draft

Papers formatting: MLA, APA, Harvard, Chicago or Turabian

Times New Roman or Arial Font

Double Spacing

275 words/Page

FREE Cover Page

FREE Bibliography or Reference page

PremiumPapers is the trusted provider of research & academic solutions that matches customers with highly qualified specialist for assignment sample writing and academic editing. http://premiumpapers.net